Pacific Grove will sell you water. On the FY 2026–27 fee schedule, a tenth of an acre-foot lists at $26,933, and a 60% discount runs through June 30, 2027. That puts the discounted price at roughly $10,773, plus a $509 processing fee. The city can't sell you the meter that water has to run through.
Under the State Water Resources Control Board's terms, Pacific Grove's entitlement water can be used at most Cal-Am service addresses in the city. It "cannot be used on properties without access to a pre-existing water meter." If you're comparing Pacific Grove with other Peninsula towns, that one condition changes how you should value a vacant lot, a home without an active meter, or a plan to add a bathroom or an ADU after closing. As of October 2026, the active meter is the asset. The entitlement is an add-on that only works where a meter already exists.
Why a meter is worth more than an acre-foot
The scarcity starts with State Water Board Order WR 2009-0060. Condition 2 bars Cal-Am from serving new service connections and certain increased uses at existing addresses. The only exceptions are projects that had the required written approvals before October 20, 2009. Pacific Grove's own water page warns that the moratorium may keep Cal-Am from setting a meter on a project that has no current active meter, even when the owner has bought city entitlement.
The city's entitlement for sale is based on potable water saved by the Pacific Grove Local Water Project. On November 5, 2025, the City Council adopted Resolution 25-026, which divided the roughly 19.2551 acre-feet then available for sale: 15 acre-feet a year for residential use and 4.2551 for an unallocated reserve. In the same resolution, the Council divided the 32 acre-feet a year that the Monterey Peninsula Water Management District assigned to Pacific Grove from Pure Water Monterey. Affordable housing received 23, commercial 6, municipal 3 and residential none. So the residential pool is the PGLWP water, and it comes with the pre-existing-meter condition.
The city doesn't publish a live balance or a wait-list count. The city's municipal code keeps chronological priority for qualifying wait-list requests but has barred new additions since April 20, 2022. Nobody outside City Hall can tell you how much of the 15 acre-feet has been sold since November 2025. Treat availability as something to confirm in writing, not something to assume.
What adding water actually costs in 2026
Adding water involves two separate charges. The city sells the entitlement. MPWMD charges a capacity fee on any net increase in water use, and it counts one fixture unit as 0.01 acre-foot. At MPWMD's 2026–27 rate of $38,222 per acre-foot, effective July 1, 2026, that comes to $382.22 per fixture unit.
Charge | Who sets it | 2026–27 figure | Per tenth of an acre-foot, or 10 fixture units |
|---|---|---|---|
Entitlement, list price | City of Pacific Grove | $269,331 per acre-foot per year | $26,933 |
Entitlement after 60% discount, through 6/30/27 | City of Pacific Grove | about $107,732 per acre-foot | about $10,773 |
Application processing | City of Pacific Grove | $509 | $509 |
Capacity fee on net increase | MPWMD | $38,222 per acre-foot | $3,822.20 |
Those figures are only a starting point. MPWMD decides how many water units a project needs, and the city then sells entitlement in acre-feet to match. The process runs through a building-permit application, an MPWMD confirmation of the water units needed, a city application and payment, notarized assignment papers, and a title-company escrow and recording. Only then does the city sign the release MPWMD needs to issue a water permit. Plan your remodel calendar around a second, smaller escrow.
How the meter condition changes property comparisons
When you compare properties, ask each one the same thing first: is there an active Cal-Am meter on this address today?
- A home with an active meter and a known fixture count. This is where city entitlement can actually be used. If you plan to add fixtures later, the table above gives a rough sense of the cost, subject to MPWMD's count and the city's remaining supply.
- A home without an active meter. The city's own guidance says the moratorium may prevent a meter from being set, even with purchased entitlement. Water you can buy may not be water you can use.
- A vacant lot. It faces the same meter barrier. A public comment letter quoted by Monterey County NOW describes how the order can affect plans to build there.
- A home bought with an ADU in mind. Pacific Grove's ADU instructions tell applicants to confirm water with MPWMD and, if more is needed, to use the city's entitlement-sale process. MPWMD states that its second-bathroom protocol is not a way to create an ADU. Its residential permit form also says separate meters are required for each user, which runs straight into the meter question.
MPWMD requires a water permit to get a building permit, set a meter, add meters, change meter size or increase water use on an existing connection. Every one of the plans above goes through that permit.
Three dates that could change the math
The meter condition is under review right now, and two other deadlines fall within the next nine months.
- November 5, 2026: State Water Board hearing on the moratorium. On June 19, 2026, the Board announced a hearing on MPWMD's October 2025 application to modify the orders. It will take up two questions: whether to lift the moratorium on new service connections, and whether a trigger should automatically reimpose it if Cal-Am's diversions under Order 95-10 exceed 3,376 acre-feet in any water year. Public comment is on November 5, and closing briefs are due November 10.
- January 1, 2027: an old toilet credit expires. MPWMD Ordinance 201, adopted April 20, 2026, removed the 0.5-fixture-unit credit for a standard 1.28-gallon toilet. Credits documented before the ordinance by inspection or purchase receipt stay usable to offset new uses only until January 1, 2027. After that, the credit is gone. Credits for ultra-high-efficiency toilets, instant-access hot water systems, and high-efficiency clothes washers and dishwashers remain.
- June 30, 2027: the city's 60% discount ends, according to the FY 2026–27 fee schedule. The Council had earlier extended the discount through June 30, 2026, with Resolution 25-027.
The hearing's outcome is not yet known. In testimony submitted in August, Cal-Am senior manager David Pezzini wrote that the company "does not object to a temporary suspension of the moratorium." His proposal would suspend it until July 1, 2030, on the condition that the desalination plant is online. MPWMD General Manager Dave Stoldt told the paper the district is fine with continued reporting and with reinstating the order "if we can't handle the prosperity." Even if the moratorium is lifted, both sides expect conditions that could bring it back.
New supply has arrived, and more is still in process. The Pure Water Monterey expansion was completed in October 2025, adding 2,250 acre-feet a year. On April 30, 2026, the California Public Utilities Commission denied rehearing of its supply-and-demand decision. The State Lands Commission approved a slant-well lease for the desalination project on June 23, 2026. MPWMD's tracker, updated September 12, 2026, still lists several required approvals as unmet.
Water rules that apply to every sale
Every Pacific Grove sale also triggers MPWMD's own requirements, whatever happens with meters. The district's conservation rules apply to all transfers of property ownership. Residential standards include high-efficiency toilets, showerheads up to 2.0 gallons per minute, bathroom faucets up to 1.2 gpm, and kitchen, utility and bar faucets up to 1.8 gpm. The seller is responsible for the retrofits. The buyer can agree to complete them after the title transfers, and the district may allow up to six months.
Unpermitted fixtures are the bigger issue. MPWMD says they must be authorized by the local jurisdiction or removed, and a notice of non-compliance can be recorded on title and stay there until compliance is verified. A third bathroom that never went through a water permit is more than a disclosure item. It's a fixture-count problem the next owner inherits, and fixture counts are what determine how much water a property can use.
Quick answers
Can I buy Pacific Grove entitlement for a lot with no meter? The State's terms say entitlement water can't be used on properties without access to a pre-existing meter, and the city warns that the moratorium may block a new meter.
Is there a public count of how much residential entitlement is left? No. The 15 acre-feet allocated in November 2025 is the most recent published figure. The city's water page does not post a current balance or wait-list position.
Does the November 5 hearing lift the moratorium? No. It's a hearing day for public comment and policy statements, followed by closing briefs on November 10. The State Water Board's decision comes after that.
Do older toilet credits still count? Documented 1.28-gallon toilet credits can offset new uses until January 1, 2027, and then they expire.
If a Pacific Grove property you're considering depends on adding water, a meter or an ADU, check its meter status, its permitted fixture count and its MPWMD records before you write the offer. Tommy Barker at Property Barker can pull together those water details on a specific address and talk through what they mean for your price and timing. Let's Connect.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
